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U.S. Senate in talks on possible compromise for jobless aid

U.S. Senate in talks on possible compromise for jobless aid

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House Minority Leader Nancy Pelosi joined Sen. Jack Reed, a key Democrat in the Senate, in pressing the case for renewing expired unemployment benefits for the nation's 1.3 million long-term unemployed.

U.S. Senate in talks on possible compromise for jobless aid

In this Jan. 7, 2014, photo, Senate Majority Leader Harry Reid tells reporters that he was pleased that six Republicans voted with the Democratic majority to proceed with legislation to renew jobless benefits for the long-term unemployed, at the Capitol in Washington. The struggle in Washington over whether or not to renew expired jobless benefits for the long-term unemployed is as much about providing aid to 1.3 million out-of-work Americans as it is about drawing the first political bright line of an election year that has the economy as one of its central themes. (AP Photo/J. Scott Applewhite)

U.S. Senate in talks on possible compromise for jobless aid

In this Jan. 7, 2014, photo, Senate Minority Leader Mitch McConnell, R-Ky., joined by Sen. John Barrasso, R-Wyo., left, the Republican Policy Committee chairman, tells reporters that Senate Majority Leader Harry Reid, D-Nev., and his political tactics are almost entirely responsible for making the Senate dysfunctional, following a procedural vote on legislation to renew jobless benefits for the long-term unemployed, at the Capitol. The struggle in Washington over whether or not to renew expired jobless benefits for the long-term unemployed is as much about providing aid to 1.3 million out-of-work Americans as it is about drawing the first political bright line of an election year that has the economy as one of its central themes. (AP Photo/J. Scott Applewhite)

By STEVE TETREAULTSTEPHENS WASHINGTON BUREAU

WASHINGTON — The Senate appeared for much of Wednesday headed to a new clash over federal jobless payments, split whether the cost of extending benefits should be offset by budget cuts or new revenues elsewhere.

A day after a $6.5 billion, three-month extension bill advanced through one procedural hurdle, Democrats and Republicans staked out competing positions and dug in, at least publicly.

At the end of the day however, Senate Majority Leader Harry Reid of Nevada reported “productive conversations” were taking place on a possible compromise on how to restore payments to 1.3 million long-term unemployed.

Reid, who opposes an offset, postponed a second test vote on the bill Wednesday evening to allow talks to continue.

“If it’s going to be paid for, figure out a year’s worth of pay-for. And that would be much better than this nickel-and-diming. If we try to do it for three months paid-for, I would almost bet that it won’t get done,” Reid said, suggesting a deal might extend the program longer.

He asserted that payments to people who have been out of work for more than six months should be declared an emergency not requiring to be balanced.

“Let us extend this now and give these people their benefits and then work to see if we can come up with a long-term solution to this issue,” he said.

Responded Republican leader Mitch McConnell of Kentucky: “If the majority leader wants this bill to pass the Senate, then it’s a pretty good likelihood he’s going to have to find a way to pay for it.”

McConnell’s comment was echoed by other Republicans.

Six Republicans voted Tuesday for a key motion to move the bill forward, and at least three have said they would reverse course and vote to block the bill from final passage unless Reid relented and allowed votes on amendments to pay for the benefits and avoid increasing the deficit.

“I will not vote to end debate without an offset,” said Sen. Kelly Ayotte, R-N.H. She was seconded by Sen. Rob Portman, R-Ohio.

At stake are payments to people who lost benefits when the federal unemployment compensation program was allowed by Congress to expire on Dec. 28.

The federal payments kick in when job seekers exhaust an initial 26 weeks of state-funded benefits. Depending on the unemployment rate in their state, people can collect up to 47 weeks of additional payments averaging $256 weekly.

In Nevada, which leads the nation with a 9 percent unemployment rate, 16,800 people lost federal benefits. Their average weekly check was $314, according to the state Employment Security Division.

Ayotte unveiled an amendment she said would pay for jobless benefits by stopping “illegal immigrants” from claiming additional child tax credits. It would require tax filers to have Social Security numbers to qualify, an estimated savings of $20 billion over 10 years.

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